United States v. David Miner
774 F.3d 336
| 6th Cir. | 2014Background
- David Miner ran two programs (IRx Solutions and Blue Ridge Group) that advised clients to obtain/amend IRS Individual Master Files (IMFs) via FOIA/Privacy Act requests and to place assets in common-law trusts to avoid income tax.
- Several clients testified Miner drafted threatening/frivolous letters to the IRS and advised practices to hide assets (cash funding trusts, avoid SSNs) after clients disclosed active IRS actions (notices of deficiency, liens, offers in compromise).
- The IRS investigated Miner; he was indicted on one count under 26 U.S.C. § 7212(a) (omnibus clause—corruptly endeavoring to obstruct due administration of the internal revenue laws) and two counts for willful failure to file tax returns; convicted on all counts.
- Miner argued at trial and on appeal that (1) the jury should have been instructed that § 7212(a) requires awareness of a pending IRS proceeding; (2) his conduct was constitutionally/statutorily protected (First Amendment, FOIA/Privacy Act, right to petition); and (3) portions of IRS Agent Lee’s testimony improperly opined on his state of mind.
- The district court denied his requested instruction and admitted much of Agent Lee’s summary/opinion testimony; Miner was sentenced to 18 months on the § 7212(a) count (concurrent terms on others).
- On appeal the Sixth Circuit agreed the jury instruction omission and portions of Agent Lee’s testimony were erroneous but held both errors harmless given the strong evidence Miner knew of pending IRS actions and acted corruptly to impede collection.
Issues
| Issue | Plaintiff's Argument (Miner) | Defendant's Argument (Gov't) | Held |
|---|---|---|---|
| Whether § 7212(a) omnibus clause requires proof defendant knew of a pending IRS proceeding | Miner: Yes—awareness of a pending IRS action is required to show corrupt intent | Gov’t: No—Kassouf was limited by Bowman; §7212(a) can reach anticipatory conduct intended to impede IRS | Court: Awareness of some pending IRS action is required (Kassouf controls); failure to instruct was harmless here because evidence showed Miner knew of pending actions |
| Whether Miner’s conduct was protected by First Amendment/statutory rights (FOIA/Privacy Act, right to petition) such that conviction lacked sufficient evidence | Miner: Activities were lawful speech, petitions, and information requests; conviction overbroad/vague as applied | Gov’t: Mens rea requirement (“corruptly”) and pending-proceeding limit narrow the statute; sham/frivolous actions not protected | Court: Statute not unconstitutional as applied; jury found corrupt intent and sufficient evidence supported conviction |
| Admissibility of IRS Agent Lee’s testimony summarizing investigation and opining letters intended to impede IRS | Miner: Agent’s testimony impermissibly argued the case and opined on his mens rea | Gov’t: Testimony was proper summary and obvious inference for jury | Court: Portions (opinion about intent) were improper admissions but were harmless given overwhelming other evidence of corrupt intent |
| Whether evidentiary and instruction errors require reversal | Miner: Errors were prejudicial and warrant reversal | Gov’t: Errors harmless beyond a reasonable doubt | Court: Errors harmless; conviction affirmed |
Key Cases Cited
- United States v. Kassouf, 144 F.3d 952 (6th Cir.) (omnibus clause requires awareness of some pending IRS action to infer corrupt intent)
- United States v. Bowman, 173 F.3d 595 (6th Cir.) (distinguishes Kassouf where defendant deliberately filed false forms to provoke IRS action)
- United States v. Aguilar, 515 U.S. 593 (Supreme Court) (awareness of a pending proceeding is a reasonable proxy for intent under a justice-obstruction omnibus clause)
- United States v. McBride, 362 F.3d 360 (6th Cir.) (defines acting "corruptly" as intent to secure an unlawful benefit)
- Neder v. United States, 527 U.S. 1 (Supreme Court) (instructional error is reversible only if it contributed to the verdict)